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In the simple Keynesian framework, the price level ___ in the short run. A.is fixed B.is indeterminate C.varies directly with unemployment D.varies inversely with wages

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics

Section: Chapter Questions

Problem 2CQ

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Question

In the simple Keynesian framework, the price level ___ in the short run.

A.is fixed

B.is indeterminate

C.varies directly with unemployment

D.varies inversely with wages

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